LOC 211 Chapter 3: Chapter 3 Notes

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Formal structure enhances morale if it helps us get out work done it has a negative impact if it gets in our way (ex: buries in red tape or too easy for management to control us) Structures in stable environments are often hierarchical and rules-orientated. Two issues are central to structural design: differentiation - how to allocate work, integration - how to coordinate diverse efforts after parceling out responsibilities. Creating roles and units yields the bene ts of specialization but creates problems of coordination and control result is suboptomization. With vertical coordination higher levels coordinate and control the work of subordinates through authority, rules and policies, and planning and control systems. Performance control imposes concrete outcome objectives without specifying how the results are to be achieved measures and motivates individual efforts less successful when goals are ambiguous, hard to measure, or of dubious relevance.

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